Debt collection does not mean procuring money from the defaulter by force or any other unfair means. This is a legal process and the policy of good debt collection practice is followed by such agencies during the initiation of debt collection. Any outstanding debt which has become obsolete is not included in such debt collection process according to the Debt Collection Act. During the initiation process it is the responsibility of the creditor to ensure that the process implemented is justified, legal and will not cause any unreasonable inconvenience to the debtor.
Benefit of Debtor’s Delay
At no cost the creditors should benefit from the debtor’s delay however responsible the debtor may be the consequences but be proportionate to the delay. There may be problems in making payments but it should be solved through agreement with minimal inconvenience caused by the consumer debt collection agency. Such amicable agreement often involves creation of a new repayment schedule or agreeing on a new payment date as well. Once such new agreement is made, the debtor should not be demanded payments based on original schedule.
Earlier Debt Relationship
There must be some earlier debt relation on which an outstanding debt is based and only a collection letter by the New York collection agencies or a payment demand is not enough to justify outstanding debt. There are also set limitation period of three years from the time the payment is due to consider a debt to be outstanding. Apart from that the general limitation act, special laws for limitation are also considered during the initiation process of debt collection. The terms that were laid down and legal effects that may differ from the general limitation provisions are also carefully considered.
